The 60-Day CGT Reporting Rule 2026 — What Happens If You Miss the Deadline?

What Is the 60-Day CGT Reporting Rule?

Before April 2020, UK residents who sold a residential property and owed CGT had until the January 31st Self Assessment deadline — potentially over a year after completion — to pay. The 60-day rule changed this: you must now report and pay an estimated CGT liability to HMRC within 60 days of completion.

The rule was introduced to bring residential property CGT collection closer to the point of sale, rather than leaving HMRC waiting months or years for payment. It applies to all UK residential property sales where a CGT charge arises — regardless of whether you complete a Self Assessment return.

The key date is completion, not exchange The 60-day clock starts on the completion date — the day legal ownership transfers. Exchange of contracts does not start the clock, even if you receive a deposit. If completion is delayed after exchange, the 60 days runs from the actual completion date.

Factor	Detail
Triggered by	Sale of UK residential property with a CGT liability
Clock starts	Completion date (not exchange)
Deadline	60 days after completion
What to report	Estimated CGT liability for the disposal
What to pay	Estimated CGT (may be adjusted in SA return)
How to report	HMRC Capital Gains Tax on UK property (online)
Applies to overseas sellers?	Yes — non-UK residents have 60 days too

Who Must Report — and Who Is Exempt

The 60-day rule applies when all three conditions are met: you sold or disposed of a UK residential property, a CGT liability arises after reliefs and exemptions, and you are not covered by an exclusion.

Must report within 60 days

Buy-to-let properties with a taxable gain
Second homes and holiday properties with a taxable gain
Inherited property sold at a gain above the annual exemption
Former main home sold after a period of letting (partial CGT)
Non-UK residents selling UK residential property (regardless of whether CGT is due)

No reporting required within 60 days

Your main home sold with full Private Residence Relief — no CGT liability, no report needed
Property sold at a loss — no CGT liability
Gain is fully covered by the £3,000 annual exemption — no CGT liability
Commercial property, land, shares or other non-residential assets — not covered by this rule
Property transferred between spouses or civil partners — no disposal for CGT

Non-UK residents — stricter rules apply Non-UK residents must file a 60-day return for all UK residential property disposals, even if there is no CGT to pay. This applies to individuals, trusts and companies. The penalty regime is the same.

Deadlines and Penalties Timeline

The penalty regime is automatic — HMRC does not need to open an investigation to issue a late filing penalty. The penalties and interest stack up quickly.

Day 0

Completion dateClock starts. You have 60 days to report and pay estimated CGT.

Day 60

Reporting deadlineLast day to submit your return and pay estimated CGT via HMRC's online service. No penalty if submitted by midnight.

Day 61+

£100 automatic fixed penaltyHMRC issues a £100 penalty immediately. Interest begins accruing on unpaid CGT from this date.

+6 months

Second penalty: £300 or 5% of taxAn additional penalty of £300 or 5% of the outstanding CGT — whichever is higher. Interest continues to accrue.

+12 months

Third penalty: £300 or 5% of tax (again)A further penalty of £300 or 5% of tax — whichever is higher. HMRC may also open a compliance check if the delay appears deliberate.

Penalty Trigger	Penalty Amount	Interest?
1 day late (day 61)	£100 fixed	Yes — from day 61
6 months late	£300 or 5% of CGT (higher)	Yes — continuing
12 months late	£300 or 5% of CGT (higher)	Yes — continuing

Appealing a Penalty

You can appeal an automatic late filing penalty if you have a reasonable excuse — for example, a serious illness, bereavement, or HMRC system failure. A reasonable excuse does not include not knowing about the rule, or your solicitor failing to warn you. Interest on unpaid CGT cannot be appealed — it is statutory.

How to Report to HMRC

You report through HMRC's dedicated Capital Gains Tax on UK property online service. You need a Government Gateway user ID and password.

Step-by-step

Calculate your estimated gain — sale price minus purchase price, allowable costs and the £3,000 annual exemption
Estimate your tax — apply 18% (basic rate) or 24% (higher rate) to your taxable gain
Log in to HMRC online and navigate to "Report and pay Capital Gains Tax on UK property"
Complete the return — property details, sale date, gain calculation, tax due
Pay — pay immediately online, or set up a bank transfer. Payment must reach HMRC within the 60 days too
Keep your reference number — you will need it for your Self Assessment reconciliation

Your solicitor cannot file for you — but can help you calculate The 60-day report must be filed by you (or your tax agent, if you have one). Your conveyancing solicitor can provide the financial details of the sale but cannot file the HMRC return unless they are your authorised tax agent. Contact an accountant if you are unsure of the calculation.

Worked Examples

Sarah, 52 — Missed the Deadline, Sheffield

Late Filing — Automatic Penalty Applied

Sarah sold a buy-to-let flat in Sheffield. Completion was 14 March 2026. Her CGT liability was £8,400. Her solicitor mentioned the 60-day rule but Sarah forgot about it during the move. She filed on day 73 — 13 days late.

Penalty: £100 automatic fixed penalty (day 61).
Interest: 13 days' interest on £8,400 at HMRC's late payment rate (~8.5% in 2026) ≈ £25.

Sarah filed her return online, paid the outstanding CGT plus interest, and appealed the £100 penalty. HMRC rejected the appeal as "not knowing about the rule" is not a reasonable excuse.

Total additional cost: ~£125 (£100 penalty + £25 interest). Still required to include the disposal in her January 2027 Self Assessment return.

James, 35 — Full PRR, No Report Needed

Main Home Sale — 60-Day Rule Does Not Apply

James sells his main home in Leeds for a £90,000 gain. He has lived there since purchase — full Private Residence Relief applies. No CGT is due.

Because there is no CGT liability, James has no obligation to report the disposal within 60 days. He does not need to use HMRC's online CGT service. If James does not complete Self Assessment for any other reason, he does not need to file an SA return either.

No action required. PRR covers the full gain — no CGT, no 60-day report, no SA required.

Nick, 47 — Overseas Holiday Home, Rule Does Not Apply

Foreign Property — Self Assessment Only, No 60-Day Rule

Nick sells a holiday apartment in Spain for a €40,000 gain. He is UK resident and the gain is taxable in the UK under his Self Assessment return. However, the 60-day reporting rule applies only to UK residential property.

Nick must report the gain through his annual Self Assessment return by 31 January 2028 (for tax year 2026/27). He may also need to report and pay tax in Spain under Spanish law — potentially with a foreign tax credit against his UK liability.

No 60-day HMRC report required. Nick reports the gain through SA by January 2028 and claims any eligible foreign tax credit.

Calculate your exact CGT liability before reporting to HMRC.

Capital Gains Tax Calculator →

Interaction with Self Assessment

The 60-day report is an in-year payment on account — a snapshot estimate made close to the sale. It is not a final settlement. If you complete a Self Assessment return, you must also include the disposal in your annual SA return for the relevant tax year.

On your SA return you reconcile

If you overestimated CGT in the 60-day report → HMRC refunds the difference
If you underestimated → you pay the balance by 31 January
If you had other capital gains or losses in the same year → these are netted off against the property gain

Keep your 60-day report reference number — you enter it in the SA return to link the two submissions and avoid being treated as having not reported.

If you do not normally complete SA (because you are employed and all your income is taxed through PAYE), selling a UK property with CGT due does not automatically trigger an SA requirement — the 60-day report alone is sufficient. However, you should register for SA if you have other untaxed income, or if HMRC writes to ask you to complete a return.

Frequently Asked Questions

The 60-day CGT reporting rule requires you to report and pay an estimated amount of capital gains tax to HMRC within 60 days of completing the sale of a UK residential property — if a CGT liability arises. The rule applies regardless of whether you complete a Self Assessment return. You report using HMRC's online Capital Gains Tax on UK property service. The 60-day clock starts from the completion date, not exchange of contracts.

If you miss the 60-day deadline, HMRC issues an automatic £100 fixed penalty. If you remain late after 6 months, an additional penalty of £300 or 5% of the outstanding CGT (whichever is higher) applies. After 12 months, a further penalty of £300 or 5% (whichever is higher) is charged. HMRC also charges interest on any unpaid CGT from day 61 onwards. If you have a reasonable excuse for the delay, you can appeal the penalty — but interest will still accrue on unpaid tax.

No — if you have no CGT liability after applying Private Residence Relief, the annual exemption, or a CGT loss, there is no requirement to report within 60 days. The rule only applies when a CGT charge actually arises. However, you may still need to report the disposal on your Self Assessment return if you are required to complete one. If you are unsure whether your gain falls within the exemption, it is worth calculating it carefully — an unreported liability with a missed deadline is an avoidable penalty.

Yes — if you normally complete a Self Assessment return, you still need to include the property disposal in your annual return. The 60-day report is a separate, in-year payment on account, not a replacement for SA. On your SA return, you reconcile the estimated payment against your actual liability and either pay more or receive a refund. If you do not normally complete SA, selling a residential property with CGT due does not automatically require a full SA return — the 60-day report is sufficient, but you should check with HMRC if you have other income that may require SA.